Earnings Per Share

9 Months Ended

Sep. 30, 2021

NOTE 13. EARNINGS PER SHARE

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares plus the incremental effect of dilutive potential common shares outstanding during the period. In periods when losses are reported, the weighted average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

The components of basic and diluted earnings per share are as follows (in thousands, except per share data):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Numerator:
Net loss	$	(15,303	)	$	(2,944	)	$	(6,346	)	$	(21,799	)
Denominator:
Weighted average common shares outstanding, basic		115,985			57,865			78,191			57,865
Dilutive effect of preferred stock (1)		—			—			—			—
Dilutive effect of stock options (1)		—			—			—			—
Dilutive effect of warrants (1)		—			—			—			—
Weighted average common shares outstanding, diluted		115,985			57,865			78,191			57,865
Net loss per share, basic	$	(0.13	)	$	(0.05	)	$	(0.08	)	$	(0.38	)
Net loss per share, diluted	$	(0.13	)	$	(0.05	)	$	(0.08	)	$	(0.38	)
Anti-dilutive securities excluded from diluted loss per share:
Anti-dilutive preferred stock (1)		—			138,612			—			138,612
Anti-dilutive stock options (1)		26,652			22,973			26,652			22,973
Anti-dilutive warrants (1)		—			1,887			—			1,887

(1)

Due to the net loss during each of the three and nine months ended September 30, 2021 and 2020, no dilutive securities were included in the calculation of diluted loss per share because they would have been anti-dilutive.